Bitcoin is currently holding steady above the $60,000 support level, but a cryptocurrency analyst has issued a cautionary prediction about a looming significant downturn for the leading digital asset.
Alan Santana, a cryptocurrency analyst, expressed concerns about Bitcoin’s potential crash and formation of a major low in the near future. Santana pointed out that if Bitcoin continues to trade below $70,000, it could experience heightened volatility and face a challenging road ahead.
The technical challenges started back in March 2024 when Bitcoin hit an all-time high of $74,000. Since then, a bearish trend has persisted, with Bitcoin struggling to recover and forming lower highs until it eventually crashed in August. Santana emphasized that unless key levels are reclaimed, optimism for a positive trend remains limited.
Santana’s bearish stance is backed by the formation of a descending triangle pattern on Bitcoin’s chart, indicating a potential further downside. This pattern has raised concerns about a potential drop to as low as $30,000.
Despite the bearish outlook, Santana highlighted two scenarios that could shift Bitcoin towards a bullish trajectory. Firstly, a breakout above $71,000 could invalidate the downward momentum, and secondly, the production of a new low with reduced selling volume and oversold indicators may signal a potential bottom. Santana stressed the importance of clear reversal signs before any optimism can be justified.
Furthermore, while Santana predicts a downturn for Bitcoin, he sees potential opportunities emerging in the altcoin market. Small-cap altcoins have been showing bullish signals as they have already hit their bottom levels compared to Bitcoin.
In a separate analysis by crypto trading expert Ali Martinez, it was noted that Bitcoin is currently at a critical juncture, with the asset facing potential price movements in both directions. Bitcoin’s critical support level was identified at $63,300, where a significant accumulation of realized transactions occurred. Failure to hold this support could lead to a downward move towards $60,365, the next potential support level.
As of the latest update, Bitcoin was trading at $63,650, showing gains of approximately 0.7% in the last 24 hours and nearly 7% over the past seven days. The cryptocurrency remains above key moving averages, indicating positive momentum in both the short and long term, suggesting the potential for further growth as long as it maintains its price above these levels.